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Quidel Stock Higher on Estimated Revenue Rise Tied to Covid Rapid Tests

Quidel shares are higher after the diagnostic-test company estimated a rise in third-quarter revenue tied to its rapid Covid-19 tests.
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Shares of Quidel  (QDEL) - Get Quidel Corporation Report are higher after the producer of medical diagnostic tests estimated a rise in third-quarter revenue, tied to its rapid Covid-19 tests. 

The San Diego company said it expects total revenue in the quarter to range between $505 million and $510 million, an increase of 6% to 7% from a year earlier. 

"In the third quarter of 2021, we saw a significant uptick in demand across multiple markets for our SARS category products as Covid-19 infections continued to rise due to the spread of the highly transmissible delta variant," Chief Executive Douglas Bryant said in a statement.

"Thanks to the strategic investments we made to continue building out our professional and retail channels in the first half of the year, Quidel was able to meet much of this demand at multiple points of care, including to consumers in stores and online, driving better-than-expected product sales," Bryant said.

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Analysts polled by FactSet were expecting revenue of $376.9 million. 

Quidel shares at last check were 6.9% higher at $145.60. 

The company secured a 12-month contract valued at an expected $284 million to supply as many as 51.2 million QuickVue At-Home over-the-counter Covid-19 rapid antigen tests to the federal government. The order quantities from the government have not yet been confirmed. 

The company says it produced and shipped its largest volume of tests ever in the third quarter and also is on track to reach its target run-rate capacity of about 70 million rapid antigen tests. 

The firm does say that the third-quarter results are fluid and based on demand that could change quickly if Covid cases decline.